Sterling poised to lose value after recent high trading

Sterling’s rise on the foreign exchange market could be coming to an end. During April the pound broke out of the limited range in which it has been trading since the credit crunch of 2008, and made advances against the Euro and the dollar.

Strength

With a stable political base and resultant stable financial policies, the UK has been able to grow the pound. By contrast changes in leadership in France and fears that Spain may need to bail out their banks, have contributed to the Euro's fall in value.

Tourism

News that sterling is poised to lose value after recent high trading will come as relief for tourist planning a holiday to America or any part of the eurozone. In April the pound hit a three and a half year high against the Euro when it traded at 1.25 Euros, but this month the markets are suggesting a fall for the pound.

Credit crunch

Before the credit crunch the pound was worth around $2 and 1.70 Euros, so are the current increases really as impressive as some experts believe? Today the pound is also seen as something of a safe haven for foreign investors, but will that always be the case?

The future

Although further increases cannot be ruled out, experts believe that a correction is required to make sure the UK’s export market isn’t hit. As the government plans to use exports to drive the economy forward, news that the pound is poised to lose value will be welcome in Westminster and may actually help the country onto a road to financial recovery.